Real estate investment in Turkey had become attract foreign investors, to invest their money in the real estate market in Turkey.
Turkey attracts the foreign investors who are interested in the real estate investment in Turkey. In the last years, Istanbul became the first destination for investors who are looking for apartments in Istanbul for sale to invest and obtain Turkish citizenship.
If you are interested in buying a property in Turkey, you should know everything related to foreign ownership of real estate in Turkey.
Is a foreigner entitled to own a property in Turkey?
According to Article 35 of the Turkish Constitution, a foreigner has the right to own a property in Turkey, whether the property is an apartment, a commercial store, or an agricultural land.
The location of the property must be far from military areas or state-owned lands. In the past years, the Turkish government has issued many decisions that make it easier for foreigners who are interested in the real estate investment in Turkey.
What are the conditions for owning property for foreigners?
If the investor wishes to buy apartments in Istanbul, for example, he has the right to own more than one property, whether it is a residential or commercial property. But if he wants to buy a land and reclaim it, there are some conditions that he must abide by:
– The investor must submit his project and reclaim the land within two years.
– The foreign investor should obtain approvals from the competent security authorities if the land is close to the military areas.
What are the rights of foreign property owners?
A foreigner who owns a property in Turkey has the right to obtain a renewable residence permit for a period of two years by owning apartments in Turkey. Foreigners are allowed to buy properties in all Turkish cities.
Turkish law also guarantees the right to inherit the property for the legal heirs in the event of the death of the property owner, and the inheritance is distributed according to the Turkish law on inheritance.
On the other hand, the property owner can sell his property at any time he wants.
Tax fees for transfer of ownership:
If you are interested in the real estate investment in Turkey, you have to know the following:
The property ownership tax for foreigners in Turkey is paid only once and amounts to 4% of the property price. It is often distributed equally between the seller and the buyer. After the tax fees are paid, the seller relinquishes the property in favor of the buyer and the new owner receives the title deed from the Title Deed Department.
After the buyer receives his property, he can subscribe to gas, electricity, water, internet, etc., and this is done by paying the value of insurance and connecting the previous services for one time by visiting the relevant institutions, which are simple procedures.
types of real estate investment in Turkey in Istanbul:
There are many real estate investment in Turkey options in Istanbul, and the area that you should choose varies according to the type of investment you want, such as:
Buying property in Istanbul in under construction project in a strategic location then sell it after the project is finished.
Buying apartments in Istanbul in luxurious compounds and rent it at a high profit. These areas must have all services from transportation, universities, schools and shopping centers such as Beylikdüzü, Avcilar, Küçükçekmece.
Homes and Beyond Group for real estate investment in Turkey offers you the best property opportunities in Istanbul for housing and real estate investment in Turkey.
What are the Advantages of real estate investment in Turkey?
The real estate investment in Turkey is one of the most active and powerful real estate markets around the world.
Turkey ranks fourth among the top ten real estate investment sites in the world. This is because of its components and infrastructure, and thanks to the large government facilities that it offers to foreigners who want to buy properties in Turkey.
Turkey’s geographical location in relation to the world plays a big role in making it a destination for foreign investments.
The foreign investor’s interest is focused on the search for apartments for sale in Istanbul, due to its important strategic location and being the economic capital of Turkey. In addition to its large population, which provides a large segment of consumers and labor.
The infrastructure projects undertaken by the Turkish government in Istanbul also greatly affect the real estate investment market, such as Istanbul’s third airport, the largest airport in the world, and Istanbul Canal.
Types of real estate investment in Turkey:
There are many options for the real estate investment in Turkey.
Where you can buy apartments in Istanbul in luxurious compounds, or buying commercial properties like shops, hotel apartments, home offices.
The hotel apartment system is one of the best type of real estate investment in Turkey. it characterized by being quick to rent, since Istanbul is an important tourist city and tourists flock to it throughout the year, so choosing the hotel system apartments will be successful. There are many construction companies that offer a rental guarantee with a high profit return.
We at Homes and Beyond Group for real estate investment in Turkey offer our clients the best hotel apartments in Istanbul in strategic locations.
Home Office apartments provide a high profit return. These properties are easy to rent and have a long-term contract, because the tenant establishes an office and will stay there for years so as not to lose his clients who are accustomed to his location.
shops in Istanbul:
Investing in shops is one of the most prominent types of real estate investment in Turkey, which provides its owners with very high monthly and annual profits.
Should I invest my money in commercial or residential properties?
We receive many questions about real estate investing in Turkey in residential apartments or commercial properties. To answer your questions, we made the following comparison between commercial properties and residential apartments to real estate investment:
The capital of investment in apartments is less than the capital of investment in shops.
Profitability returns for apartments are less than those provided by shops.
Residential properties resale is faster than commercial properties resale.
The annual tax on commercial property is higher than the tax on residential property.
Residential apartment rental contracts are on an annual basis, while in shops, the contract is for several years.
The real estate investment in Turkey in Istanbul:
The real estate investment in Turkey, in Istanbul market is divided into three sections:
High value properties:
These properties are located in the central areas of the city and are often characterized by a view of the Bosphorus, and their high prices lie as they are areas where archaeological and tourist sites are located, in addition to being a commercial center in Istanbul. An example is (Sisli, Uskudar).
Medium value properties:
You find these properties in strategic and upscale areas, but they are farther from the center and closer to Ataturk Airport and Istanbul Third Airport. Such as the areas (Küçükçekmece, Başakşehir, Atakoy).
cheap properties in Istanbul:
You can find cheap apartments for sale in Istanbul in the new and developing areas, where all service facilities are available and feature new buildings such as the areas (Esenyurt, Beylikdüzü, Bahçeşehir)
When buying an apartment in Istanbul, you must specify the budget available for purchase, and if your budget is suitable for buying cheap apartments in Istanbul, do not consider that your choice is wrong, Because Istanbul property prices are always on the rise, wherever you choose your apartment according to your budget, your choice will be right.
What are the factors that determine property prices in Turkey?
When you decide to enter the world of real estate investment in Turkey, and intend to buy a property in Turkey, you must determine the most appropriate city for investment. The options for you are varied, as each city in Turkey has many qualifications, between tourism, trade and industry.
The tourist cities in Turkey attract businessmen who want to own a property to spend their holidays in Turkey. The commercial and economic cities also attract investors to buy apartments for real estate investment.
Istanbul is the best destination for real estate investment in Turkey, and buying a property, as it is the center of trade and economy and the capital of tourism, as it includes the most beautiful tourist places in Turkey.
Different prices for apartments in Istanbul:
When you decide to enter the world of real estate investment in Turkey, before taking the buying steps, you must know and see property prices in Turkey in general and the prices of apartments in Istanbul.
You start searching for apartments for sale in Turkey online by communicating with one of the reliable real estate companies in Istanbul. Real estate in Istanbul. When communicating with the real estate consultant, the consultant will inform you about all the projects that suit your request and budget, and here in this context we highlight the most important factors that contribute to determining property prices in Istanbul:
The location of the apartment plays a key role in determining its price. The closer the location is to the city center, the higher the purchasing value of the apartment. These properties are the most expensive in Istanbul, which has a view of the Bosphorus.
When you want to make an insurance real estate investment and buy property in Istanbul, you must determine your purchase goal, is it residential or investment?
If the goal of the real estate investment in Turkey is to buy apartments in Istanbul, you will have wide options in terms of the location and price of the property. You can buy an apartment consisting of a room and a hall with a budget not exceeding 75,000 dollars in New Istanbul within a residential compound.
The real estate investment in Istanbul is divided into two parts, commercial and residential property, and the prices of commercial property are higher than the residential.
Real estate investment in Turkey and the exchange rate of the Turkish lira:
Real estate investment in Turkey, and buying a property in Turkey had increased more with the decline in the exchange rate of the Turkish lira against the dollar.
This made properties in Istanbul attract many foreign investors. Where they can buy a property in Turkey at a lower price compared to property prices in Istanbul, before the exchange rate of the lira fell.
It is worth noting that buying and selling transactions are made in Turkish lira. This includes those interested in obtaining Turkish citizenship, where the price of the property is paid in Turkish lira, and the amount is required to be equivalent to 400 thousand US dollars and above.
What are the most suitable cities for real estate investment in Turkey?
The real estate investment in Turkey attracts foreign investors who are looking for apartments for sale in Istanbul to invest and obtain Turkish citizenship.
Istanbul ranks first in buying apartments for real estate investment in Turkey. The properties in Istanbul are the best seller for foreigners, because of the advantages that the city enjoys that make it the first destination for real estate investment.
Istanbul enjoys strong economic growth with great investment options in the real estate market.
It is one of the biggest selling points and has the best types of real estate investment in Turkey.
How is the return on real estate investment in Turkey calculated?
The method of calculating the return on real estate investment in Turkey is different from other types of investment.
The capital invested in the property remains the same and its value does not change, and if the appropriate real estate investment in Turkey opportunity is chosen, the value of the property will increase.
For example, if the real estate investment is made in a property with a guaranteed investment return of 6% for a period of 5 years, the investor will receive 30% of the property value. If the real estate investment site is a promising one, the property prices are set for an increase in it. The investor gets an investment return from reselling the property in that area.
how to Obtaining Turkish citizenship?
The bank deposit amount has been reduced from 3 million US dollars to 500 thousand dollars.
This came after the amendments made by the Turkish government to the law on granting Turkish citizenship to foreigners.
Where you can obtain Turkish citizenship by depositing the equivalent of 500 thousand US dollars in a Turkish bank for a period of three years.
Establishing a company and hiring Turks:
A foreign investor can obtain Turkish citizenship by establishing a company, factory or any institution and employing 50 Turkish people, and the number has been changed from 100 to 50 Turkish employees.
Real estate investment in Turkey:
You can obtain Turkish citizenship through real estate investment in Turkey and buying a property in Turkey by 400.000 $.
It is worth noting in this context that one of the most important conditions for obtaining Turkish citizenship by buying apartments in Turkey is a pledge not to sell the property for three years.
After the three years have passed, the owner of the property who obtained Turkish citizenship can sell his property if he wants to.
However, it is not permissible to sell it to another investor of the same nationality. For example, if the investor with Turkish citizenship is British, he is not entitled to sell the property to another British investor.
Documents required to obtain Turkish citizenship:
The law on granting Turkish citizenship by purchasing a property includes the property owner and the wife/husband, and citizenship is granted to children under the age of 18.
• A copy of the passport translated by the sworn translator, and certified by the notary public.
• 4 personal photos (for each family member)
• A document showing the civil status (proving the property owner’s relationship with the wife and children), marriage contract, children’s birth certificates.
• Residence Permit in Turkey
• Health certificate
• Title deed document
• Evaluation expert report
• A bank document of the transfers that were paid to pay the price of the property through the bank.
Frequently asked questions about Turkish citizenship:
• When can I apply for citizenship by buying a property in Turkey?
The application must be submitted immediately after purchasing the property, with all required documents attached to the application
• Can my family apply for citizenship based on my ownership of the property?
The investor’s wife/ husband and children under the age of 18 have the right to apply for citizenship within the same investor’s application.
Children over the age of 18 can only obtain citizenship if they suffer from disabilities and the investor is the only person who takes care of them.
• Is the property bequeathed to the legal heirs after death?
The property is inherited and transferred to the legal heirs after death.
• Is the investor obligated to buy a specific type or location of the property?
The investor is not bound by a specific location or type of property, he can buy a property in any Turkish city. It is worth noting in this context that most of buyers who are interested in the real estate investment, prefer to buy properties in Istanbul.
• Do I have the right to sell the property after obtaining citizenship?
The investor is not entitled to sell the property until after three years.
• Is it possible to resell the property to the first owner?
The investor can’t resell his property to the first owner. The holder of Turkish citizenship can resell the property to anyone except the first owner.
should I buy a property in Turkey ready or under construction?
if you are interested in the real estate investment in Turkey, you have to know the advantages of under construction property and ready to move.
Advantages of ready to move real estate investment in Istanbul:
Many foreign investors who are interested in the real estate investment in Turkey, prefer to buy ready to move properties for several reasons, including:
Handing over the apartment and moving to the residence after signing the contract and paying the first payment in case the purchase was in installments.
See the apartment and preview it on the ground, so what you see is what you buy.
Title deed is ready and the property ownership is registered in your name immediately.
If you want to rent the apartment and benefit from the profit, you can rent it immediately after receiving it
The price of the ready property is higher than the property under construction.
Advantages of under construction property in Istanbul:
When the goal of buying property in Istanbul is for real estate investment in Turkey, it is recommended to go towards the projects that are under construction due to the investment value that rises with the passage of time and progress in the construction phases.
In under construction projects, many options are available according to apartments type. You will find more options in terms of location, floor, space, and view. You can make the adjustments that suit you.
The price of the property under construction is cheaper than the ready property, with the possibility of paying in installments with flexible payment plans with higher discount rates on cash payment.
Governmental construction companies in Turkey:
When you decide to enter the world of real estate investment in Turkey, before taking the buying steps, you must take an idea about the most famous governmental construction companies in Turkey.
It is one of the largest property developers in Turkey, and it belongs to the Turkish Urban Development Administration, Emlak konte was established in 2002.
The company tries to take action steps depending on the need of the consumer, and it seeks progress and development through buying lands in strategic areas and reconstruction.
The company’s capital is about 3.8 billion Turkish liras. And between 2003-2017, the company established about 130,000 housing units distributed over 132 projects, and this number is considered huge compared to other companies.
It is a government company for the construction of housing projects. The company presents its projects that work on a long-term strategy aimed at providing housing for people with medium and limited incomes, through an integrated partnership with the private sector.
One of the most prominent features of Toki’s projects is the installment payment plan suitable for people with limited income, as it provides the possibility of installments for long years between 10-15 years.
Toki also chooses important strategic sites for the construction of projects, and the project is built according to the best conditions with high-quality cladding and finishes.
Important Real estate terms:
It is a document that is given to the owner of the apartment in Turkey.
It should be noted in this context the type of title deed.
if you are interested in the real estate investment in Turkey, and buy apartment in Turkey within a compound ready to move, you will get a full title deed.
And if you buy an apartment in under construction project, you receive an easement title deed. When the construction works have finished, you will deliver the title deed.
Down payment and reservation:
The reservation is the deposit that is paid to confirm the serious intent to buy the apartment in Turkey, before paying the full price of the apartment.
If you are interested in the real estate investment in Turkey, and want to buy an apartment in Istanbul and prefer to pay in installments, you have to pay a down payment of the price of the property, and it is calculated on the principle of a percentage of the total price of the property. In Istanbul projects, the initial payment is between 35-50% of the property price. Pay the installments monthly for three years or more, according to the plan determined by the construction company.
It is the amount paid by the buyer after signing the contract to start the procedures for transferring the property to his name. It includes the fees for documenting contracts with the notary public, and fees for registering the property in the name of the buyer and obtaining the title deed. These fees amount to 4% of the property value and are paid equally between the buyer and seller.
There are also insurance fees, subscription fees for gas, water, electricity and internet services. It is paid as insurance to the relevant institutions.
Insurance fees against earthquakes and natural disasters:
It is an annual tax paid by the property owner in Turkey to secure his home against natural disasters. It is equal to $2 for every square meter of the apartment. The value of the natural disaster insurance tax varies depending on the location of the property.
Municipal Tax Fee:
Turkish municipalities impose on property in the area under their service an annual fee of 0.03% of the property value, which is equivalent to $30 per year for a property whose price is $100,000. It should be noted that this tax is paid for the services provided by the municipality to the area.
It is a design for the apartments model within the project while it is under construction. So, if you are interested in the real estate investment and want to buy apartment in Istanbul in under construction project you can take a look over the apartment sample before you buying.
Real estate companies send photos and videos of apartments type for foreign investors before they come to Istanbul to take an idea about the shape and design of the apartment to be purchased.
It is the process of completing the requirements of the property after the completion of construction work such as painting and installing shelves, kitchen cabinets, bathroom fixtures, floors, doors, windows, etc…
It is worth noting that the construction companies in Turkey deliver the apartment ready to move, and some companies deliver the apartment with electric kitchen appliances (oven, air intake, gas), and the owner remains to buy the furnishings.
In March 2019, the Turkish Ministry of Housing issued a decision requiring the presence of a real estate expert recognized by the Ownership Department.
His mission is to evaluate the price of the property and issue an evaluation report for the property price to complete the purchase process and register the property in the Land Registry.
What are the best areas for real estate investment in Turkey in Istanbul?
When thinking about buying property in Turkey for real estate investment in Turkey, it is necessary to determine the investment destination first and choosing the best region to ensure a successful investment.
We highlight to you the best areas that you should choose to real estate investment in Istanbul
Basin Express is one of the most attractive locations for real estate investment in Turkey.
Where the Basin Express region witnessed an urban revolution, and great interest by the Turkish government. In addition to the interest of foreign and local investors who want to invest and buy apartments in Istanbul.
Basin Express has been classified among the most important service areas, and is the second commercial business center in the city and the first investment site in the new Istanbul.
One of the most prominent features of Basin Express is that it is the link between the E5, TEM highway, and the coastal road, as well as the North Marmara highway.
Başakşehir in Istanbul:
Başakşehir is one of the most prestigious areas in Istanbul. One of the most prominent features of its strategic location overlooking the Istanbul Canal project, which constitutes a qualitative leap for the region after the project is ready.
Başakşehir has a strong transportation network serving the region, including public transport buses, metro line, and minibuses. It has a connecting station that facilitates access to all places in Istanbul.
The municipality of Başakşehir is interested in establishing infrastructure projects that advance the region, such as the Botanic Park, which is the largest botanical garden in Turkey, and the largest café in Turkey was also opened.
Kagithane in Istanbul:
Kagithane district is located on the European side of Istanbul and is surrounded by Sisli, Eyup, and Beyoglu districts. This area is considered one of the best areas for the real estate investment in Istanbul.
It is one of the most important areas in Istanbul. the region attracted the attention of the largest Turkish construction companies, many compounds and high towers were built in it.
The opening of the famous Biala Pasha Tunnel, the metro line project and the valley reclamation project in it also contributed to making it one of the most important strategic and central places in the city.
It is one of the most attractive areas for local and foreign investors who interested in real estate investment.
Steps to real estate investment in Turkey:
Real estate advice:
Real estate advice is the first and most important step in the procedures for real estate investment and buying apartments in Turkey, especially for a foreign investor who does not have sufficient information about this market.
We recommend that you choose a real estate advisor carefully. Because the real estate advisor is the one who helps you get advice and offers you the best investment opportunities and offers available from construction companies, and keeps you up to date on property prices in Istanbul and the status of the real estate market, which helps you choose the best real estate investment.
Determine Purchasing Objectives:
The real estate investment market in Turkey has witnessed a great demand from foreign investors and has become an open and well-known market for many.
Buyers were divided into two groups, one group preferring to buy apartments in Istanbul for investment and benefit from the profitable returns, and another group preferring to search for apartments for sale in Turkey with the aim of housing.
When you make the decision to buy apartments in Turkey, you must determine the purpose of the purchase.
if the goal of the purchase is to invest here, the subject differs 180 degrees, because the real estate investment depends on choosing the strategic location that serves your investment goal.
The capital allocated to the purchase plays an important role in the procedures for buying a property in Turkey.
It is worth noting in this context the great diversity of properties prices in Turkey. Where you can buy cheap apartments in Istanbul in a lively area within a high-end residential compound.
And you can buy an apartment in the high-value city center, whose price may reach the price of four apartments in another area.
When you want to buy apartments in Turkey, you must determine the financial portfolio first and share your budget with your real estate advisor so that he can provide the appropriate offers for you.
After completing the first stages of the purchase steps, you now need to move to the practical steps and work on the ground.
Your real estate tour begins with a visit to the projects that your real estate consultant showed you about, which suits your purchase goals and capital. Visit no more than three projects a day, so you don’t get confused. If you visit a large number of projects, it will be difficult to make a right decision.
When you reach the step of booking a property in Turkey, you are now about to own the property.
Among the customs of the Turkish market, the buyer should pay an amount to reserve the apartment in order to show his seriousness in buying. We must note the possibility of refunding the reservation amount within a week in the event that the investor changes his opinion.
Signing of the contract:
The investor must sign the purchase contract with the seller, in which all the details of the property are mentioned in terms of area, floor height and number of rooms with the total price of the property.
If you do not have a bank account in Turkey and a tax number, you must open a bank account and obtain a tax number to complete the purchase steps.
It is worth noting that a law has been issued requiring that the amount “the price of the property” be deposited in the buyer’s bank account in one of the Turkish banks, The amount must be in foreign currency “dollars, euros….” Then the bank transfers the amount to the Turkish Central Bank, which in turn converts the foreign currency into Turkish lira. Then re-deposit it into the buyer’s bank account. The buyer obtains an exchange document that proves the foreign currency exchange process through the Turkish Central Bank.
The buyer must notarize the purchase contract at the Turkish notary in order to guarantee his legal right. Notary offices are located in all regions of Turkey.
property registration in the real estate registry:
In order to receive the title deed, you must register the property in the title deed department. If you buy the property from the construction company here, the company will be able to carry out the procedures for extracting the title deed in your name.
It is worth noting that you must pay the property registration tax, which is 4% of the property price, to be paid equally between the seller and the buyer.
Advantages of the real estate investment in Turkey:
One of the most prominent features of the Turkish real estate market is that it is an emerging and strong market, and it is the second most active and strongest construction market in the world.
Turkey ranks fourth among the top ten real estate investment sites in the world because of its components and infrastructure, and thanks to the large government facilities it offers to foreigners who want to buy properties in Turkey.
property prices in Turkey are very acceptable compared to real estate prices in other countries.
Where you can buy a property in Turkey with high specifications and a vital location for a much lower amount than what you would pay in a similar property or with lower specifications in another country.
High Profitability Returns:
The profitability returns from real estate investment in Turkey are very good, whether the return is from rent or from resale, because property prices in Turkey are constantly rising and increasing periodically.
One of the most important features of the real estate investment in Istanbul is the diversity of investment opportunities, as you can invest your money in buying a property in Istanbul ” commercial” or search for cheap apartments in Istanbul in new areas promising development, and the investor can buy hotel apartments in Istanbul that provide guaranteed profit returns.
If the goal of owning a property in Turkey is to obtain Turkish citizenship here, the options for the investor will be multiple. Because with $4000,000 he can buy one or several properties in different regions, which provides him with an opportunity to distribute the investment portfolio.